Regulatory Alerts2016-01-01
Circular 06/2016: Revision of Item Value Limits on Cheques and EFTs
The Bank of Zambia issued Circular 06/2016 to revise Item Value Limits for cheques and electronic funds transfers, aiming to accelerate the adoption of electronic payment methods. The directive reduces the local clearing cheque threshold to K25,000, establishes a US$5,000 limit for foreign cheques, and increases direct debit and credit limits to K75,000 and K500,000 respectively. Effective 180 days after issuance, the circular prohibits cheque splitting to circumvent these thresholds and imposes a 25% penalty fee on violating banks, payable to the Zambia Electronic Clearing House.
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